On April 17, the House passed, 407-7, the Taxpayer Protection Act (H.R. 1677), a bill that would enact several provisions designed to protect American taxpayers from various types of fraud and to increase Internal Revenue Service (IRS) outreach.
Sponsored by Rep. Charles Rangel (D-NY), H.R. 1677 would: require the IRS to notify taxpayers about potential identity theft; prevent “phishing” — the use of intentionally misleading electronic mail or web sites to obtain financial information — by imposing civil penalties on those who engage in the practice; prevent tax fraud by allowing the IRS to share tax return-related information about prisoners; extend provisions that allow individuals to file lawsuits against the IRS for wrongfully-imposed levies; place limits on predatory refund anticipation loans; and increase Earned Income Tax Credit (EITC) outreach to individuals who may qualify for the credit.
Of the EITC outreach provisions, Rep. John Lewis (D-GA) said, “H.R. 1677 will also assist with efforts to reach millions of working Americans who are eligible to claim the earned income tax credit. These taxpayers often do not take advantage of the EITC. They have a right to know of all benefits available to them. Under this bill, the IRS will expand its current outreach program to help more low-income Americans receive this tax credit, a credit that lifts millions of families out of poverty each year.”
Rep. Jim Ramstad (R-MN) said, “I strongly support another provision in the bill which would encourage the IRS to do more to ensure that taxpayers entitled to receive earned income credit refunds actually receive them. Mr. Speaker, as we all know, the earned income credit is one of our most effective antipoverty tools for working families. This provision certainly deserves our strong support.”
